Pilot Energy Ltd. reported Wednesday that it has inked an agreement with Murphy Australia to acquire 100 percent interest in exploration permit WA-481-P, located in the offshore North Perth Basin, Western Australia.

Murphy will assign the interest to the Australian junior oil and gas exploration firm in return for getting a net profit interest on any future hydrocarbon production from within the permit. Pilot Energy's interests in permit WA-481-P was triggered as a result of its collaboration with Key Petroleum Ltd., its joint venture partner in the onshore EP437 permit, which lies around 6.2 miles (10 kilometers) to the east of WA-481-P. The cooperation agreement with Pilot Energy gives Key Petroleum the right to acquire a 40 percent stake in the offshore block.

The shallow water WA-481-P permit is located near the onshore Dongara, Beharra Springs and Waitsia gas fields and the onshore Jingmia & Hovea oil field as well as the offshore Cliff Head oil field. The block's primary petroleum plays are oil and/or gas within the Dongara Sandstone and the Irwin River Coal Measures. Oil and gas have been found within the permit, with the Frankland gas and Dunsborough oil discoveries representing contingent resources.

The acquisition is subject to approval of the National Offshore Petroleum Titles Administrator.

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